MyLoanCare is a FREE of cost service for borrowers Apply Online

MyLoanCare - Baat Aapke Interest Ki

MyLoanCare Customer Ratings - 4.5/5.0 Apply Online

Credit Card Cash Withdrawal

Credit Card Cash Withdrawal Charges

Last Updated 23rd Jun 2021

  • Credit Card Cash Withdrawal is one of the easiest options to get money when a person is in a hurry.
  • Cash advance credit cards are not offered by all financial institutions and it varies from card to card as well.
  • Credit card cash withdrawal limit is different for every bank generally it ranges between 20%-40% of the credit limit.
  • To avail such facility, a cardholder will have to pay cash advance fee, finance charges.
  • An interest rate will be charged on the withdrawn amount from the date of transaction till the amount is paid back in full.

About Credit Card Cash Withdrawal

Half a century ago, Barclays launched the first credit card in the world and since then the relationship with money has changed and now borrowing has become much easier. There are various facilities offered by the credit card companies but one such facility which provides cash instantly is known as Credit Cash Withdrawal.

Credit Cash Withdrawal is also termed as Credit Card Cash Advance, which means that a cardholder can withdraw cash instantly from any ATM across the world using the credit card. A cardholder can instantly get funds without submitting any documents, however, all the financial institutions do not offer such a facility and if they do, they charge a penalty for the same.

Credit Card Cash Withdrawal Limit

Credit Card Cash Withdrawal limit is set by the credit card companies which allows an individual to withdraw the cash off from the available credit limit. Credit limit is a maximum amount of money which lenders extend to a credit cardholder for a particular line of credit. Generally, financial institutions have set credit card cash withdrawal limits to 20%-40% of the credit limit. For example:- HDFC Bank has set credit cash withdrawal limit to 40% of the credit limit and the cash withdrawal limit for SBI Unnati card is up to 80% of the credit limit.

Interest Rate on Cash Withdrawal from Credit Card

Withdrawing money from a credit card can get cash instantly but it is a costly affair. The day the cardholder withdraws money from the ATM, he/she will be charged with interest rate. The interest rate typically ranges between 2.5%-3.5% per month and not only interest rate but a person will also have to pay a transaction fee which is 2%-3% of the withdrawn amount.

What is Credit Card Cash Advance Fee?

Every time a cardholder withdraws money from an ATM using the credit card, they will have to pay a credit card cash advance fee. The advance fee typically ranges between 2.5%-3% of the transaction amount, subject to a minimum amount of ₹ 250 - ₹ 500. Every month the advance fee is reflected in the credit card billing statement. A cardholder also has to pay finance charges with advance fee and it is the same as cash advance fee and it is levied till the time that amount is paid back.

Credit Card Cash Advance Fee Charged By Top Banks:-

Bank Name Cash Advance Fee
SBI 2.5% of the transaction amount, subject to minimum ₹ 500
HDFC Bank 2.5% of the withdrawn amount or ₹ 500 whichever is higher
ICICI Bank 2.5% of the withdrawn amount, subject to minimum ₹ 250
Axis Bank 2.5% of the withdrawn amount, subject to minimum ₹ 250
HSBC Bank 2.5% of the withdrawn amount, subject to minimum ₹ 300
Citibank 2.5% of the transaction amount, subject to minimum ₹ 500
Standard Chartered Bank 3% of the transaction amount, subject to minimum ₹ 300

Advantages and Disadvantages of Credit Card Cash Withdrawal

There is a saying, “Nothing is perfect in the world and everything has its pros and cons”. So, the following are the advantages and disadvantages of credit card cash withdrawal.

Advantages Disadvantages
During the financial crunch, cash can be withdrawn instantly, 24*7 from any ATM. Higher interest rate will be charged from the date the cardholder withdraws the amount.
A cardholder is not required to submit any documents. Cash advance fees and finance charges are levied on the translation amount.
A person with a good credit history can get their credit card cash limit extended. A user will not be able to use or redeem the reward points if they withdraw the cash using a credit card.


Do all banks provide Credit Cards Cash Withdrawal?

No, all banks do not provide credit card cash withdrawal and there are few banks who offer this facility but it is not offered on all the credit cards. At the time when you avail the credit card, you should check if the facility is offered.

Is there any approval required for Credit Card cash withdrawal?

No, there is no need for any approval to withdraw money from credit cards. Also, you are not required to submit any kind of documents to the lender.

How is interest calculated on cash advances?

The interest is calculated on cash advances and is calculated the same way it is charged on credit card transactions. The interest is charged on a monthly basis and it is charged from the date the transaction is made and till the amount is paid in full.

Notification ×
  • Home Loan

    Home Loan at all-time low rates starting at 6.65%. Cashback of up to ₹ 1,000.

    Apply Now
  • Personal Loan

    Instant Personal Loan starting at 10.25% with Cashback of up to ₹ 1,000 .

    Check Offers
  • Gold Loan

    Instant Gold Loan starting at 9.50% with Cashback of up to ₹ 500

    Apply Now
  • Loan Against Property

    Best Loan Against Property Offers starting @ 7.20%. Cashback of up to ₹ 1,000*.

    Apply Now
  • Business Loan

    Collateral Free Business Loan Rates starting at 14.00% with Overdraft facility.

    Apply Now
  • Fixed Deposit

    AAA rated FDs with returns as high as 6.95%.

    Invest Now
Credit Card News - Jun 2021
  • 2021-06-23 : Google Pay launches cards tokenisation with SBI and other banks
    After successfully rolling out tokenisation with Kotak Mahindra Bank, SBI Cards, and Axis Bank, Google Pay has now added debit cards by SBI, IndusInd Bank, and Federal Bank and credit cards by IndusInd Bank and HSBC India to its slate. Digital wallet platform Google Pay has expanded its network of bank partners offering cards tokenisation on the Google Pay app and added lenders including SBI, IndusInd Bank, Federal Bank, and HSBC India. Google has rebranded its Tez app, launched in September, as Google Pay—the catch-all label for its payments services.
  • 2021-06-16 : Ujjivan Small Finance Bank collaborates with MoEngage
    Ujjivan Small Finance Bank has collaborated with customer engagement platform MoEngage to provide digital banking services in remote areas of the country. The aim is to build a wide presence of the bank with customers in the unserved regions through digital services.
  • 2021-06-15 : Indian Overseas Bank declared a profit of Rs 831 crore
    IOB closed the last fiscal with a net profit of Rs.831 crore as against a net loss of about Rs.8,527 crore. The total income for the year ended 31.03.2021 stands at Rs.22,525 crore as against Rs.20,766 crore for FY20. IOB plans to come up with Prompt Corrective Action to focus on loan recovery, low-cost deposits and less capital consuming advances.
  • 2021-06-14 : IDFC First Bank’s helping hand for the covid-affected families of employees
    To help the families of employees who lost their lives due to covid, IDFC First Bank is offering compensation of upto 4 times of the CTC along with a salary of two years. Along with that, the bank is also wavering the loans of such employees to reduce the burden on the employees’ family.
  • 2021-06-01 : Karur Vysya Bank posted 24% growth in Q4 net
    Karur Vysya Bank posted a 24% rise in its net profit at Rs 104 crore in the last quarter of the fiscal ended March 2021. The profit was boosted by retail loans home, LAP, personal, two-wheeler, car education and doctor loan along with business and mudra loan. The lender credit growth during the year was higher at 8.87% and gross advances reached Rs 52,820 crore.
*Terms and conditions apply. Credit at sole discretion of lender, which is subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and collected from public sources. Read More
Please wait while your information is being processed...